This is the only city in all of Spain in which the price of housing falls


House prices have risen from average throughout Spain up to 8.1% in 2022. Among all the cities, capitals, provinces and autonomous communities there is only one place where housing has fallen by up to 7.2% last year, in Zamora, thus being the only provincial capital in Spain in which the price of housing not only did not increase but also fell.

According to the local market report for the fourth quarter of 2022 from the Tinsa appraiser, the cities in which the value of housing increased the most last year were Madrid (10.3%), Teruel (9.8%), San Sebastián (9%) and Valencia (8.5%) and, in the least, Jaén (1%), Palencia (1.2%) and Ciudad Real (1.3%).

The director of the Tinsa Studies Service, Cristina Arias, explains in statements to EFE that the fall in the value of housing in Zamora is due to the phenomenon of depopulation in the last decade, although, as in most cities, in 2022 real estate demand increased there as well.

“In 2022, what is observed is that, despite the increase in sales, the increase in demand has been combined with a sufficient supply, because due to depopulation, there are enough houses available and therefore there has been no price pressure“, comments on the supply of housing in Zamora Arias, who points out that housing prices in this capital are at historical lows.

Madrid, Teruel, San Sebastián… the capitals with the highest increase

The imbalance between supply and demand is the reason why the price of real estate increased throughout the territory in 2022 and, in cases such as Madrid, Teruel, San Sebastian and Valenciathis shock is even greater.

As Arias clarifies, what happened in Madrid and Valencia is that, as a result of the confinements due to covid-19, a revaluation of spacesince, by spending more time in the homes and incorporating teleworking dynamics, new needs were discovered.

“This coincided with a time of very low interest rates, which was also facilitating access to financing. With which, everything came together and it was a perfect time to boost demand in the purchase of housing”, assures the Tinsa board of directors.

He adds that this situation generated that all this demand -to which is also added that derived from the search for employment and vacation properties- has found a insufficient housing stockthat is, with an offer that has not been able to adapt to this “so sudden” increase in demand.

Cheapest municipalities to buy a home

Linares (Jaén) and Ponferrada (León) are the relevant Spanish municipalities at the provincial level -that is, they are not provincial capitals, but have markets with a major real estate activity– cheaper to buy a home.

According to the 70 locations with these characteristics analyzed by Tinsa in the last quarter of 2022, Linares -with a price of €789 per square meter- and Ponferrada (€802/m2), are followed by Talavera de la Reina (€822 /m2), Mérida, (€910/m2) and Lorca (€944/m2).

The average price of square meter in Spain stands at 1,751 euros and the most expensive capitals are San Sebastián (€4,074/m2), Barcelona (€3,591/m2) and Madrid (€3,583/m2), followed at some distance by Bilbao and Palma de Mallorca. The cheapest are Zamora (€1,013/m2), Soria (€1,049/m2) and Ciudad Real (€1,066/m2). Arias explains that, depending on whether the housing stock is sufficient or not, the price has increased more or less depending on whether it could meet that demand.

The autonomies where the price has risen the most: Madrid, Aragon and Navarra

By autonomous community, the regions that experienced the greatest interannual variation in 2022 were Madrid (10.4%), Aragón (10.3%), Navarra (8.7%), Andalusia (7.3%) and Castilla y León (7.3%). According to Arias, the Community of Madrid is where the greatest increase in prices is being observed, since the cost is increasing greatly both in the capital and in the surrounding municipalities.

“This suggests that there is a great competition for space within the capital and that this pushes prices very upwards. But, in addition, there is a search for larger spaces in the metropolitan areas and there is also a certain expulsion effect, since living in some districts of the capital is too expensive and some people are looking for homes in the surrounding municipalities,” he concludes. According to Tinsa’s board of directors, they hope that in 2023 the demand will moderate “a little”, although they do not believe that there will be a drastic fall.

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